Can Canada Host the First Bitcoin-Focused ETF?

With the talk of many in the financial community revolving around cryptocurrencies and blockchain technology of late, companies operating various exchange traded funds (ETFs) have put forward proposals to become the first bitcoin-focused ETF in a very hot market in both Canada and the U.S.

With investors clamoring to own or trade Bitcoin and other cryptocurrencies, the amount of money which stands to be made on the exchange or transaction end can be very lucrative. As such, many have expected that by now we would already have Bitcoin-oriented ETFs available for investors to dip into.

Unfortunately, given the recent ruling by the U.S. Securities and Exchange Commission that Bitcoin-related ETFs will be required to re-file with answers to additional questions relating to liquidity, valuationm and security, the door has been opened to Canadian ETF firms to potentially launch a Bitcoin ETF first. Canadian regulators are expected to review applications and act accordingly, with many expecting similar additional disclosure rules to be put in place by Canadian regulators.

Of course, being first doesn’t automatically ensure any Canadian Bitcoin ETF will outpace its U.S. counterparts. That said, having a substantial amount of cash inflows may allow a Canadian Bitcoin ETF to gobble up market share in this space, allowing for an indication of how successful other ETF offerings may be globally.

While I will not be participating in any Bitcoin-related ETF, I will be watching very eagerly from the sidelines.

Invest wisely, my friends.

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